FTSE makes gains amid market turmoil
The FTSE 100 Index gained almost 2% today as global markets fought back from yesterday’s turmoil.
Hopes of substantial rate cuts from the US Federal Reserve tonight inspired a share comeback on Wall Street, leading to modest gains in Asian markets overnight.
After a session which saw £51 billion wiped off blue-chip stocks, the Footsie had clawed back some of the damage by mid-morning today, standing 100.1 points higher at 5514.5.
Official figures showed inflation at its highest level for nine months in February, but this failed to dent the recovery as the 2.5% Consumer Price Index reading was in line with expectations.
Banks suffering in yesterday’s mayhem fared better today with gains for major players including Halifax Bank of Scotland and Barclays, which advanced 16.75p to 477.25p and 13p to 405.5p respectively. HSBC was the sector’s top performer, up 37.5p to 783.5p.
Helpful broker notes also helped the FTSE progress. Pharmaceutical firm Shire led the risers board, up 7% or 69.5p to 1068p after brokers at UBS said there could be logic in a bid for the business from rival AstraZeneca. Astra also moved 117p up to 1765p.
Insurer Standard Life meanwhile rose 5%, or 13.75p to 243.75 after Morgan Stanley cut its target price but highlighted the defensive qualities of the stock.
Fashion chain Next was 59p higher to 1175p on a trading update from department store chain Debenhams, whose first-half sales dip was not as bad as the City had feared. This also helped Marks & Spencer gain 16.75p to 373p.
In the FTSE 250 Debenhams, which said results would be in line with expectations despite the sales dip, was up 2.75p to 56p, or 5%.
With the market in better spirits there were just three top-flight stocks in the red, although mining stocks accounted for two of them as metals prices slipped. Kazakhmys was off 32p to 1592p, while Xstrata fell 8p to 3712p.
